Croatia’s biggest cities to get EIB guidance on developing affordable housing

• EIB to advise Croatian cities of Zagreb, Rijeka, Split, Osijek, and Varaždin on housing expansion to meet growing needs.
• Agreement aims to develop local guidelines and identify best financing approaches for social and affordable homes.
• EIB's advisory support to reflect best practices in European affordable housing.

The European Investment Bank (EIB) will advise five major Croatian cities - Zagreb, Rijeka, Split, Osijek and Varaždin - on expanding social and affordable homes to meet growing demand from residents. Under an advisory agreement with the five cities, the EIB will lend its expertise to them in tackling challenges including a need to increase housing for socially vulnerable and low-income people.

Croatia faces a housing crunch. Home prices in the country are among the fastest rising in the EU, soaring about 80% over the past decade, according to the latest data released by the European Parliament.

"Supporting social infrastructure, including housing, is a core part of the EIB's strategic priorities, as outlined in our roadmap to reinforce Europe's social foundations. This commitment reflects our promise to deliver impactful results, including in Croatia, where we are actively supporting the creation of energy-efficient and accessible housing solutions," said EIB Vice-President Teresa Czerwińska." Through this partnership, we aim to empower Croatian cities to create inclusive and resilient communities. We are helping these urban centres take meaningful steps towards meeting housing needs."

The EIB advisory support will be informed by best practices in European affordable housing. EIB experts will work closely with the five Croatian cities, each with a particular set of challenges, to develop guidelines for affordable-housing projects, evaluate current policies and measure the housing stock and investments needed over the next 10 to 20 years. The advisory support is funded by the InvestEU Advisory Hub programme.

Zagreb Mayor Tomislav Tomašević: "I am very pleased that the EIB has recognised the importance of social and affordable housing and has decided to support Zagreb and other Croatian cities in their development. Cooperation with the EIB confirms our commitment to creating quality living conditions for all our citizens, especially the most vulnerable. By investing in affordable housing, Zagreb is laying the foundations for a stronger and fairer community, and an important part of this is the regulation of rental prices in the city. That is why one of the 10 strategic projects of this City Administration is the construction of an affordable housing building in Podbrežje with 288 apartments for about a thousand residents, which will start next month.''

Split Mayor Ivica Puljak: ''Affordable housing is a priority not only in Split, but also in many other cities in Croatia and the European Union. We recognise that a systematic and sustainable solution is needed, involving action at both national and local levels. This challenge did not arise overnight and cannot be solved quickly; it requires continuous work and cooperation of all stakeholders - from city administrations, state institutions to international partners. We believe that the technical assistance provided by the European Investment Bank is the right way to find the best systematic solutions. We are proud that Split is the first city in Croatia to use the EIB Framework Loan for Urban Infrastructure Development, which will allow us to lay a strong foundation for the future and secure long-term solutions for affordable housing.''

Rijeka Mayor Marko Filipović: "The importance of social and affordable housing, as one of the key priorities for the city, has been emphasized since the beginning of my term. In the City of Rijeka, we are investing resources and efforts to implement policies that would enable the construction of financially accessible housing for citizens, especially young people, while simultaneously preserving the quality of life and sustainability of the city. Housing availability is not only an economic but also a social issue crucial for the stability of the local community. Therefore, we support initiatives related to subsidizing housing or providing benefits for young families and other socially vulnerable groups. What I emphasize is the fact that such projects require the involvement of all stakeholders, including local authorities, construction companies, the state, and the EU."

Osijek Mayor Ivan Radić: "Resolving housing issues for young families is a major challenge across Europe. Affordable housing is crucial for ensuring sustainable growth and development in most European cities, including the City of Osijek. Our goal is to attract and retain young families in Osijek through affordable housing models. The free advisory services provided by the EIB will contribute to the development of a tailor-made affordable housing model that meets the specific needs of the City of Osijek and its inhabitants".

Varaždin Mayor Neven Bosilj : "The City of Varaždin is one of four cities in Croatia that have public institutions for the construction of social housing according to the POS Law. Along with Koprivnica, Rijeka and Dubrovnik, Varaždin is the only city to develop housing through its Public Institution for City Apartments. Now, in Varaždin, we have initiated the construction of a residential complex with 180 apartments in 6 buildings under the POS model, and the foundation for the first building has already been laid. While waiting for the state regulations, we are moving forward in our efforts to meet the needs of our citizens. Together with the EIB advisors, we are ready to start this journey, as we already have a suitable plot of land behind Koblenz Street in Varaždin, where we plan to build affordable housing."

The EIB Group has been providing financing and advisory services to the housing sector in EU Member States for 25 years. In the past five years alone, it has provided around €13.4 billion to support sustainable urban development and modernisation projects. Together with the European Commission, the EIB Group will increase its commitment to affordable housing in the coming years.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

InvestEU

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union's strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

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